By Paul A. Harris
Portland, Ore., Oct. 26 – Cetera Financial Group Inc. priced a $700 million issue of Aretec Escrow Issuer 2 Inc. senior secured notes due Aug. 15, 2030 (B2/B) at par to yield 10% on Thursday, according to market sources.
The yield printed in the middle of yield talk in the 10% area and toward the wide end of initial guidance in the high-9% to 10% area.
At the time price talk circulated on Thursday morning, the deal was playing to $1.15 billion of demand, a trader said.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were UBS Securities LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Truist Securities Inc., Jefferies LLC, Morgan Stanley & Co. LLC and Barclays.
The San Diego-based financial services provider plans to use the proceeds plus a $1.69 billion incremental term loan to fund its acquisition of Avantax Inc.
| Issuer: | Aretec Escrow Issuer 2 Inc.
|
| Amount: | $700 million
|
| Issue: | Senior secured notes
|
| Maturity: | Aug. 15, 2030
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | UBS Securities LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Truist Securities Inc., Jefferies LLC, Morgan Stanley & Co. LLC and Barclays
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Spread: | 512 bps
|
| First call: | Oct. 15, 2026 at 105
|
| Trade date: | Oct. 26
|
| Settlement date: | Nov. 2
|
| Ratings: | Moody’s: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10% area
|
| Marketing: | Roadshow
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
